Global Aroma Chemicals Market - Market Size & Forecasting To 2032
The aroma chemicals market is estimated to be USD 5.85 billion in 2023 and is projected to reach USD 8.45 billion by 2032, at a CAGR of 4.17% during the forecast period. The factors that propel the growth of the aroma chemical market include favorable economic conditions, increasing disposable incomes and growing awareness regarding personal grooming and hygiene. With the growing disposable income, customers are now more likely to spend on quality items for personal care, cosmetics, medicines and home care, available in a wide range of fragrances.
Aroma chemicals are also known as odorants, they are a group of molecules that are used as an ingredient to add flavor and fragrance to various products. Majorly used in cosmetics and toiletries including aftershave, gels, lipstick, foundation, moisturizer, nail polish, shampoo, body wash, hand wash, and sunscreen. Growing demand for cosmetics due to expanding trends in male grooming coupled with increasing population purchasing power parity will fuel growth in the aroma chemicals market.
In addition, increasing demand from developed countries has contributed substantial technological advances to the growth of the aroma chemical market. One such thing affecting the aroma chemicals market is the application of AI (Artificial Intelligence) for the production of fragrance products. With help of AI technology stakeholders are changing their business operations by carrying out ground-level improvements to determine insightful data in the environment of aroma chemicals. Similarly, increased focused towards research & development activities are giving rise to new methods for using aroma chemicals to develop perfumes for various application are also significantly contributing to the market growth.
The aroma chemical market is classified on the basis of chemical type, Ingredients, application and region. Chemical type segment comprises terpenes, benzonoids, and musk chemicals. Based on ingredients it classified as alcohols, aldehydes, esters, ketones, lactones and thiols base. The market is classified on the basis on application into synthetic and natural base.
By region, this market is segmented by North America, Asia Pacific, Western Europe, Eastern Europe, Middle East and Rest of the World (South America and Africa). Asia Pacific is expected to register fastest growing region for aroma chemicals market. India is the leading country for huge domestic consumption of aroma chemicals it is expected to be the key driver factor of the market in the Asia pacific region. Additionally, Increasing disposable income and rapid urbanization have also increased the demand for processed foods and cosmetics, which result to propel the demand for aroma chemicals in the region. However, North America and Western Europe being some of major markets are also traditional suppliers of chemicals such as specialty chemicals, bulk chemicals, and so on. Major companies in this market are headquartered in North America and Western Europe. Moreover, regulatory authorities have imposed strict guidelines with regards environmental concerns and potential health hazards due to exposures. This has been more instrumental in the Western Europe region competitively.
The competitive scenario highlights the performance of major companies operating in this market. This includes detailed profiling of major companies and their competitive benchmarking. Product profiling provides key information including products/solutions offered, key developments, company performances, and strategies adopted in the recent years. Major companies profiled in the market include BASF, Hindustan Mint & Agro Products Pvt. Ltd., Veera Fragrances Pvt. Ltd., Kalpasutra Chemicals Pvt. Ltd. and Takasago and so on. These companies have adopted product development, expansion, and merger strategies to consolidate market position amongst intense competition